Exam 5: Job-Order Costing

Goodwin Company uses a normal job-order costing system. Currently, a plantwide overhead rate based on direct labour is used. Sarah Lindsay, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Some jobs spend most of their time in Department A, while others spend most of their time in Department B. Goodwin Company has the following data for its two departments for the coming year: Department A Department B Expected ov erhead cost \ 75,000 \ 33,000 Expected direct labour hours 30,000 24,000 A. Compute the plantwide overhead rate. B. Compute the departmental overhead rates. (Carry out your answers to three decimal places.) C. Which overhead rate would you recommend, and why?

Sparkle Company produces ornamental trees and uses normal costing. Sparkle applies overhead based on direct labour hours. The following data are provided: Budgeted Actual Overhead \ 400,000 \ 392,000 Machine Hours 20,000 18,000 Direct Labour Hours 16,000 17,840 Direct Materials Cost \ 521,000 Direct Labour Cost \ 410,000 Units Produced 10,000 A. Calculate applied overhead. B. Calculate the unit cost.

White Mountain Company produces various types of snow skis. Estimated overhead for the year was $780,000 and estimated direct labour hours were 260,000. During the month of June, 18,100 direct labour hours were worked, $55,400 of direct materials were used, and the average wage was $15 per hour. In June, 10,000 pairs of skis were produced. A. Calculate the predetermined overhead rate. B. Calculate the overhead applied to production for June. C. Calculate unit cost for each pair of skis.

What account is credited when goods are sold?

The journal entry for $17 of underapplied overhead is: Cost of Goods Sold 17 Applied Overhead 17

The journal entry for $7,200 raw materials requisitioned for use in production is: Work-in-Process Inventory 7,200 Raw Materials Inventory 7,200

Quillen Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to the company: Support Departments Producing Departments S1 2 Cutting Sewing Direct Costs \ 180,000 \ 150,000 \ 122,000 \ 90,500 Normal Activity: \# of employees - 30 63 147 Maintenance hours 1,200 - 16,000 4,000 -Refer to Quillen Company. Allocating S1 costs first, how much of the support department costs will be allocated from Department S2 to S1?

The raw materials account is an inventory account located on the balance sheet.

Refer to Triple M Corporation. What journal entry should be used to record the requisition of lumber?

Refer to Triple M Corporation. Which of the following should be included in the journal entry to record labour?

What document lists the total cost for a single product?

Zinger Corporation had the following information available for March of the current year: Work-in-Process Inventory, March 1 \ 20,000 Materials placed into production, March \ 27,500 Direct labour, March \ 37,500 The manufacturing overhead rate is 150% of direct labour costs. Job cost sheets had the following balances: Job Z1 $32,500 Job Z2 $55,000 Job Z3 $35,000 Job Z4 $18,750 Jobs Z3 and Z4 were not completed at the end of March. What is the balance in Work-in-Process Inventory for Zinger at the end of March?

Quillen Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to the company: Support Departments Producing Departments S1 2 Cutting Sewing Direct Costs \ 180,000 \ 150,000 \ 122,000 \ 90,500 Normal Activity: \# of employees - 30 63 147 Maintenance hours 1,200 - 16,000 4,000 -Refer to Quillen Company. Allocating S1 costs first, how much of the support department costs will be allocated from Department S2 to the Cutting Department?

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Schedule of costs of goods sold is prepared

Rally Point Inc.Rally Point Inc. designs and builds volleyball gymnasiums. Each gymnasium is custom-built to an individual customer's specifications. The company uses job-order costing to track its costs. In January, the company worked on three jobs. Data for these jobs are as follows: Job 100 Job 200 Job 300 Balance 1/1 \ 13,790 \ 0 \0 Direct Materials 16,200 8,500 30,500 Direct Labour Cost 23,300 7,600 45,000 Machine Hours 400 300 2,000 Overhead is applied to jobs at the rate of $25 per machine hour. By January 31, Job 200 is the only job unfinished. The balance of Finished Goods Inventory on January 1 is $63,290 (consisting of Job 100 only). Jobs 100 and 300 are sold during January. The company sells its product at cost plus 40%. -Refer to Rally Point Inc. What is the balance in the Work-in-Process Inventory account on January 31?

Refer to Xtra Corporation. What is the total amount debited to Finished Goods Inventory in the current year?

Quillen Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to the company: Support Departments Producing Departments S1 2 Cutting Sewing Direct Costs \ 180,000 \ 150,000 \ 122,000 \ 90,500 Normal Activity: \# of employees - 30 63 147 Maintenance hours 1,200 - 16,000 4,000 -Refer to Quillen Company. What are the cost assignment ratios to be used under the direct method for Department S2?

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Form that may be used to maintain proper control over a firm's inventory of direct materials

Which cost is NOT associated with selling and general administrative activities?

Canadian Doll Company had the following overhead costs and production for two months. The dolls are identical to each other. October February Actual Overhead \ 12,000 \ 12,000 Number of Dolls 4,000 3,000 A. Calculate the overhead cost per doll for each month. B. What type of costing is being used here, and what is the problem with this type that is presented here?